| Title: | Facilities and Administrative (F&A) Rate Calculation Policy |
|---|---|
| Policy Owner: | Accounting Office |
| Applies to: | Faculty, Staff and Designated Affiliates |
| Campus Applicability: | Storrs and Regional Campuses |
| Effective Date: | December 26, 2014 |
| For More Information, Contact | Associate Controller and Director of Accounting |
| Contact Information: | (860) 486-1366 |
| Official Website: | http://accountingoffice.uconn.edu/ |
PURPOSE
To ensure that the University is in compliance with the cost principles and accounting standards set forth by the federal government.
APPLIES TO
This policy applies to faculty, staff and designated affiliates of the University of Connecticut, Storrs and Regional Campuses.
DEFINITIONS
Facilities & Administrative (F & A) Rate: overhead rate charged to federal research grants. It is synonymous with indirect costs, and refers to the actual operating costs for facilities and administrative personnel necessary to support externally funded research.
OMB Uniform Guidance: publication of the Office of Management and Budget titled “Cost Principles and Audit Requirements for Federal Awards.”
Governmental Cost Accounting Standards (CAS): standards and rules administered by the U.S. government for use in achieving uniformity and consistency under federal contracts.
POLICY STATEMENT
The Office of Cost Analysis (OCA), a unit within the Accounting Office, is responsible for calculating the Facilities and Administrative (F&A) rate charged to federal research grants every five years in accordance with OMB Uniform Guidance and the Government Cost Accounting Standards (CAS). The OCA will ensure that federal grants and contracts are not charged a higher rate for goods and/or services that any other internal or external customer may be charged, and only the approved F&A can be charged to grants. Departments cannot charge more on a grant than the rates approved by the Department of Health and Human Services, our cognizant federal agency.
ENFORCEMENT
Violations of this policy may result in appropriate disciplinary measures in accordance with University Laws and By-Laws, General Rules of Conduct for All University Employees, applicable collective bargaining agreements, and the University of Connecticut Student Conduct Code.
PROCEDURES/FORMS
For more information on OMB Uniform Guidance, please see:
http://www.whitehouse.gov/omb/
POLICY HISTORY
Revisions: Review and editorial revisions August 27, 2021